Britain falls from top 10 in international prosperity league

Britain has failed to make the top 10 in a prosperity index of leading countries compiled by a international think tank based in London.

By Andrew Pierce

7:00AM BST 05 May 2009

Denmark, Germany and Holland all appear above Britain in the table compiled by the Legatum (Legacy) Institute (LI) which has been set up by three senior White House staffers who served under George W Bush.

The (LI) surveyed more than 100 countries and Britain was tied with Belgium and France in 14th place, two ahead of Ireland. Australia was in top spot.

The survey measures not only wealth but "general well being" echoing a desire expressed by David Cameron, the Tory leader, for an index that covers more than simply the value of Gross Domestic Product.

In 2007 Britain was the most wealthy of the six leading economies in the world, even beating the United States, as measured by GDP per person. This is the most widely accepted way of measuring a country's wealth, because GDP represents all the money individuals and companies make each year.

But in the (LI) survey Britain was relegated from the top 10 because of perceived problems with the education system, high levels of divorce, pressures caused by immigration, and a lack of community spirit. The UK now has the highest rate of divorce since records began with a rate of 45 per cent in 2005.

On a more surprising note, the Prosperity Index judges the British climate to be one of the best in the region as it is neither too hot nor too cold. However rainfall is not measured.

The (IL) has joined forces with a global investment fund to open headquarters in Mayfair with a mandate to campaign for free-market economics, the spread of democracy, and a new definition of prosperity in which quality of life counts as much as income per head.

The think tank is run by three former lieutenants of President Bush. It is chaired by Dr William Inboden who was Senior Director for Strategic Planning on the National Security Council; Michael Magan, who was Special Assistant to President Bush and senior director in the National Security Council economic directorate; Dr Ryan Streeter who was Special Assistant to the President for Domestic Policy.

Dr Streeter said: "The high levels of immigration, particularly from Eastern European countries, have created strains on housing and health services in certain areas. Britain is also held back because its educational opportunities are trailing the US."

Dr Streeter, who worked for President Bush for six years, said (IL) which has held meetings with senior Tory politicians hoped to change the way people measured wealth particularly after the crisis in the currency markets.

He said: "Of course shareholders have a duty to hold the feet of their companies to the fire. But it is not just about salaries, you also have to invest in people. We believe you have to examine the indicators on life satisfaction, which means freedom of choice, health and climate, as well as individual wealth.

"When you wish someone a happy New Year you wish for them more than just more money at the end of the 12 months. You also want them to enjoy health and well being. There is strong evidence to support the idea that when political liberty, and human dignity expand, prosperity is the sum total."